Gordhan: Eskom needs lower power prices from independent producers

By Reuters - 18 February 2019

PRAVIN GORDAN Public Enterprises Minister Pravin Gordhan Image: File

South Africa wants to talk to independent power producers (IPPs) about lowering the price struggling state utility Eskom pays them for electricity generated from older renewable energy projects, Public Enterprises Minister Pravin Gordhan said.

Gordhan said in an interview that the aim was to "balance out" the price Eskom pays for power generated from projects launched in 2011 and 2012 and later projects, for which prices were considerably lower.

"The simple assurance is that this is not about scrapping a contract. This is about exploring possibilities that are created by the rapid fall in costs in the renewables sector, whether that's solar or wind," Gordhan said. "There are players in the renewables industry who are saying let's talk."